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Tradeoffs Evaluation of a Hazardous Waste Trade Program: Towards an Informed Decision-Making

Institute for Risk Research, University of Waterloo, Waterloo, Ontario, Canada N2L 3G1

F. Frank Saccomanno

Institute for Risk Research, University of Waterloo, Waterloo, Ontario, Canada N2L 3G1

John H. Shortreed

Institute for Risk Research, University of Waterloo, Waterloo, Ontario, Canada N2L 3G1

Increasing waste quantities, coupled with limited disposal options and tightening environmental regulations, have created a difficult situation for waste generators and handlers. In particular, as environmental laws in most industrialized nations become increasingly stringent and the costs of waste disposal rises, some waste handlers are turning to cash-poor and easily accessible territories in the developing world. Such practices are expected to continue and, possibly, even increase in the future. However, any existing waste trade is based more on uninformed decisions, since the recipient countries in particular tend to be unaware of risks involved and furthermore such countries may not be adequately compensated. As a reaction to what is essentially an unknown and unregulated situation, the weight of political opinion has shifted to an outright ban on the waste trade practices. On the other hand, it is possible to control and regulate the risks involved in such activities so as to make the waste trade more efficient and cost-effective. In a regulated and informed atmosphere, the waste trade could be mutually beneficial to both exporting and importing countries. This paper adopts the position that an outright ban of the waste trade is an unworkable option and may be an over-reaction to a poorly understood problem. The evaluation attempted in this paper considers the fact that a hazardous waste trade program can be carefully planned so that informed decisions are made for the benefit of all concerned. Under such circumstances, risks are minimized and net economic benefits are realized in a fair and socially responsible manner. The paper looks at the pertinent variables that should be closely reviewed by potential trading partners involved in a waste trade activity. A strategy is developed that will allow negotiators to act constructively despite the potential uncertainties inherent in the process.

Key Words: Trade in waste • hazardous waste • developing countries.

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